Struggling surfwear chain, Surfstitch Group, has today entered administration after appointing John Park, Quentin Olde and Joseph Hansell of FTI Consulting effective immediately.
The retailer’s online companies, SurfStitch (Aus), SurfDome (UK) and Swell (US), and publishing businesses MagicSeaweed (UK) and Stab (Aus & US) will continue to trade while the administration process takes place.
Sam Weiss, chairman of Surfstitch, said that the companies “reluctantly made the appointments due to several significant external challenges including two Class Actions, protracted litigation and an ASIC investigation which have brought high levels of uncertainty impacting the companies’ trading position.”
“The administrators have been appointed with the intention of preserving value for stakeholders in the business whilst recapitalisation options are pursued.”
John Park, leader Australia, corporate finance & restructuring of FTI Consulting, said the administrators will work closely with the operating businesses to preserve value for stakeholders.